Book value and taxes on sale of assets Troy Industries purchased a new machine 5 year(s) ago for $78,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule Assume 40% ordinary and capital gains tax rates. a. What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: $93,600; $54,600; $3,900; and $2,700. a. The remaining book value is $ 3900. (Round to the nearest dollar.) b. Calculate the firm's tax liability for each case: (Round to the nearest dollar.) Sale Capital Tax on Depreciation Tax on Total Price Gain Capital Gain Tax Recovery 74,100 $ Recovery 29,640 $ 93,600 $ $ Book value and taxes on sale of assets Troy Industries purchased a new machine 5 year(s) ago for $78,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule Assume 40% ordinary and capital gains tax rates. a. What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: $93,600; $54,600; $3,900; and $2,700. a. The remaining book value is $ 3900. (Round to the nearest dollar.) b. Calculate the firm's tax liability for each case: (Round to the nearest dollar.) Sale Capital Tax on Depreciation Tax on Total Price Gain Capital Gain Tax Recovery 74,100 $ Recovery 29,640 $ 93,600 $ $